Emphasis and Non IFRS Emphasis on Financial

Further, both the financial statements prepared using the International Financial Reporting Standards as well as the non IFRS based reports use prepared for the use of stockholders. In addition, both the financial statements prepared using the International Financial Reporting Standards as well as the non IFRS based reports are prepared for the use of customers. In addition, both the financial statements prepared using the International Financial Reporting Standards as well as the non IFRS standards are prepared for the use of the creditors.

Also, both the financial statements prepared using the International Financial Reporting Standards as well as the non IFRS based reports are prepared for the use of the managers. Lastly, both the financial statements prepared using the International Financial Reporting Standards as well as the non IFRS based reports are prepared for the use of the government regulating agencies. 1. Contrast the use of IFRS Emphasis and Non IFRS Emphasis on Financial Statement Presentation.

There are many differences between financial statements that prepared using International Financial Reporting Standards and financial statements that are not prepared using International Financial Reporting Standards. Financial statements that are presented in accordance with International Financial Reporting Standards use fair market value in the preparation of financial statements. Also, financial statements that are presented in accordance with International Financial Reporting Standards are more relevant.

In addition, financial statements that are prepared following International Financial Reporting Standards are a better decision making data. Furthermore, financial statements that are presented in accordance with International Financial Reporting Standards are more consistent with accounting bodies. Likewise, financial statements that are prepared in accordance with International Financial Reporting Standards are more understandable.

Definitely, the balance sheet, income statement and statement of cash flows that are prepared in accordance with International Financial Reporting Standards are more reliable. Lastly, preparing the financial statements in accordance with International Financial Reporting Standards is a plus in terms of financial reporting equity. Financial statements that are presented that are International Financial Reporting Standards inspired use fair market value in the recording of financial statements.

Fair market value has been defined in the related literature portion of this research. Fair market value is also defined as the amount that the seller is willing to offer to all parties interested in buying the seller’s products. And, fair market value is the bid price that the buyer is willing to pay in order possess a product. This can be explained using the theory of supply and demand portion of the foundations of economics lessons. Economics explains that as the number of buyers or demand will decline as the purchase price of goods will increase.

For, many customers would later realize that it is not worth paying so much money on a product that is unreasonably priced. The decline in the demand for the products would decline because the customers would now be enticed to buy from the other suppliers or even change their choice from their current product to an alternative but as effective one. Likewise, the seller would increase their production of goods produced if the selling prices of their goods increase. A higher sales price would increase the company’s net profits.

However, the seller cannot increase his or her selling price as high as he wants. For, the customer would not buy a product that is no very reasonable. Both the sellers and the buyers then meet in the middle in order to satisfy their need. The seller’s need to sell at a profit will be complied with if the buyer’s need to buy at a reasonable price is also beneficial to the buyer. This agreed price is known as the equilibrium price. Another term for equilibrium price is the market price.

One way of determining the fair market value of an asset stated in the company’s balance sheet is to find the current market price of the same product sold in the market. Another way of determining the fair market value is to use the past cost as basis when there is no current selling or buying activity to determine the fair market value of a product. Statement of Financial Accounting Standards (IFRS) no. 107 shows the assets liabilities and shareholders equity should be reconstituted to their fair market values.